2010 Pennsylvania Code
Title 13 - COMMERCIAL CODE
Chapter 81 - Short Title and General Matters
8106 - Control.

     § 8106.  Control.
        (a)  "Control" of certificated security in bearer form.--A
     purchaser has "control" of a certificated security in bearer
     form if the certificated security is delivered to the purchaser.
        (b)  "Control" of certificated security in registered form.--
     A purchaser has "control" of a certificated security in
     registered form if the certificated security is delivered to the
     purchaser and:
            (1)  the certificate is indorsed to the purchaser or in
        blank by an effective indorsement; or
            (2)  the certificate is registered in the name of the
        purchaser, upon original issue or registration of transfer by
        the issuer.
        (c)  "Control" of uncertificated security.--A purchaser has
     "control" of an uncertificated security if:
            (1)  the uncertificated security is delivered to the
        purchaser; or
            (2)  the issuer has agreed that it will comply with
        instructions originated by the purchaser without further
        consent by the registered owner.
        (d)  "Control" of security entitlement.--A purchaser has
     "control" of a security entitlement if:
            (1)  the purchaser becomes the entitlement holder;
            (2)  the securities intermediary has agreed that it will
        comply with entitlement orders originated by the purchaser
        without further consent by the entitlement holder; or
            (3)  another person has control of the security
        entitlement on behalf of the purchaser or, having previously
        acquired control of the security entitlement, acknowledges
        that it has control on behalf of the purchaser.
        (e)  Entitlement holder's securities intermediary.--If an
     interest in a security entitlement is granted by the entitlement
     holder to the entitlement holder's own securities intermediary,
     the securities intermediary has control.
        (f)  Purchaser under subsection (c) or (d).--A purchaser who
     has satisfied the requirements of subsection (c) or (d) has
     control even if the registered owner in the case of subsection
     (c) or the entitlement holder in the case of subsection (d)
     retains the right to make substitutions for the uncertificated
     security or security entitlement, to originate instructions or
     entitlement orders to the issuer or securities intermediary or
     otherwise to deal with the uncertificated security or security
     entitlement.
        (g)  Agreement of issuer or securities intermediary under
     subsection (c)(2) or (d)(2).--An issuer or a securities
     intermediary may not enter into an agreement of the kind
     described in subsection (c)(2) or (d)(2) without the consent of
     the registered owner or entitlement holder, but an issuer or a
     securities intermediary is not required to enter into such an
     agreement even though the registered owner or entitlement holder
     so directs. An issuer or securities intermediary that has
     entered into such an agreement is not required to confirm the
     existence of the agreement to another party unless requested to
     do so by the registered owner or entitlement holder.
     (June 8, 2001, P.L.123, No.18, eff. July 1, 2001)

        2001 Amendment.  Act 18 amended subsecs. (d) and (f).
        Cross References.  Section 8106 is referred to in sections
     8102, 8107, 8510, 9106, 9208, 9328 of this title.